S&P Global Ratings affirmed Agile Group Holdings Ltd.'s BB- long-term corporate credit rating and revised its outlook on the company to positive from stable.
The rating agency attributed the affirmation to uncertainty surrounding the pace of Agile Group's deleveraging, in light of the company's plan to drive forward its expansion with a higher land budget. S&P also noted that recently implemented government restrictions in some markets, such as Zhongshan and Guangzhou, pose a risk to sales.
As for the revision of the outlook, S&P expects gradual improvements in the developer's leverage in 2017, thanks to a recovery in margins and "robust" sales growth.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.